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Rainbow – interim results 30 September 2009

Revenue increased from R3 326 million to R3 360 million in 2009. Operating profit increased to R248.6 million (2008:R174.7 million). Profit attributable to ordinary shareholders increased to R173.4 million (R125.3 million). Headline earnings on a per share basis increased to 58.20cps (43.30cps).



Dividends per share

An interim dividend of 28.0 cps in respect of the six months ended 30 September 2009 (2008:24.0cps) was declared for the period under review.



Prospects

Maize prices are likely to remain at the lower levels but will be dependent on weather conditions and the extent of planting locally. Soya prices are likely to remain volatile due to the lower crop expectation and threat of further strikes in Argentina as well as the continued exchange rate volatility. By virtue of Rainbow”s forward procurement policy, feed prices are only expected to decline in the second six months of the financial year, however, tough conditions in the external feed market are expected to continue. Considering the economic recession and job loss statistics, consumer spending is expected to remain under pressure, translating into softer demand and continued depressed chicken realisations.